Small Business Invoicing Software

Ask any small business owner what’s the lifeblood of their business and he or she will tell you it’s healthy cash flow. Invoicing is a crucial part of keeping your cash inflow healthy. It's a mundane task that takes up a lot of time yet it’s a function that requires meticulous execution.

To save you some time it’s worth considering investing in small business invoicing software that’ll automate the process for you. It reduces the inaccuracies which happen with manual data entries and provides an organized system that timeously collects payments.

There is a wide selection of customized software available that caters to specific industries such as logistics, construction and the hospitality industry. Because each industry has its own unique set of requirements the features can vary significantly from each small business.

In this buyer's guide, we'll cover the important functions of small business invoicing software offers. We'll highlight some benefits of invoicing software as well as share trends you should be aware of. If you're a first-time buyer considering switching from a manual process to an automated process this guide can help you navigate the important phases.

The Different Functionalities of Small Business Invoicing Software

The features can differ slightly from one service provider to another but these are the most common functions below:

• Generating invoices: Your software should create invoices and customize it with your company details & logo. You can also include payment terms on the invoice according to your internal policies.
• Sending invoices: To avoid having to set up and send invoices every month for long-term clients you can set up recurring invoices that go out at a specific time & date. The system also alerts you if an invoice has been seen by a client.
• Reports: Reporting remains an important task in any business. This software can create multiple financial statements in less time. It can generate the payments collected statement, the profit and loss statement as well as the expense report.
• Payment: It should allow you to accept any online payments through various payment methods such as credit card payments, PayPal and electronic bank transfers. The software can also add late fee charges on overdue invoices and send reminders to clients to pay.
• Tracking: You can now concisely track billable hours and assign the relevant rates per project or employee. There's also an option of a flat-fee structure or billing per hour function. You can easily import this information into your invoices via the software platform.
• API: You’ll be able to integrate the software with other systems such as project management software or CRM applications. The ability to integrate multiple software solutions is key as you don’t want to duplicate tasks.

Benefits of Small Business Invoicing Software

It’s important to highlight the main benefits attached to invoicing software to motivate this expense in your company. There are many more but these are the most celebrated benefits reported from users.

Automation

The most renowned advantage is the automation of the invoicing process. The ability to set up recurring invoices for clients and payment reminders. This automated process decreases the number of late and missed payments as well as minimizes any losses for the business.

It also saves you time as the staff doesn't have to do manual entries that are prone to errors. The software solution safeguards you against inefficiencies and streamlines the invoicing process.

Professional Reputation

Displaying a professional appearance to your clients is key for repeat business and fostering trustworthy relationships. Your software solution should enhance the professional look of your invoices by allowing you to customize it with your company logo and other important designs.

Customization shows your level of professionalism which helps small businesses compete with bigger businesses. Small businesses are respected or dismissed by clients merely on the look of their invoices.

The Costs of Small Business Invoicing Software

The exact cost of invoicing software is difficult to determine as there are so many factors that filter into the total cost. You need to check how many users will be using the system. Will you be buying a perpetual license that requires a lump sum upfront or paying a monthly subscription fee?

There's also the consideration of whether you’ll opt for a cloud-based solution or feel more comfortable with an on-site hosted solution. All these variables determine the price of your software solution. The prices for Zoho invoice software starts from as little as $7 per month and increases with the number of customers & users you add. Others can start from $500 monthly depending on the features you include.

Some service providers also offer free software for small businesses with fewer clients and who don't require the recurring invoicing feature. It's best to compare several software solutions and request a quote for your specific small business before you settle on one.

Market Trends You Should be Aware off

Researching market trends gives you a fair idea of what most users are experiencing with the different software solutions in the market. It also allows you to assess what works in the industry and what doesn’t. Here are some trends we’ve uncovered:

• Cloud-based software: The dominant preference across most small business owners are cloud-based solutions because it has an easy application and quick accessibility. Sending invoices remotely from any device is also rated as an added benefit. The convenience of speed and taking care of multiple tasks with limited staff is vital for small business owners.
• Mobile apps: The general move is towards using mobile apps to access your software platform. Users want the portability and expediency to be able to work on the go. Many vendors offer features that allow users to access the software on their mobile apps.

Conclusion

There’s a lot to consider when selecting invoicing software for your small business. The options are numerous and the features extensive. The number one benefit to remember is an automated system that’ll take care of sending invoices timeously and accurately.

The cash flow of your small business depends on an efficient invoicing system that’ll ensure payments are received on time. Let us know what your perfect invoicing software solution should be to make your small business thrive.